Asset Inventory Policies, Procedures and Responsibility

1. Asset Inventory Policies, Procedures and Responsibility Fannin County Purchasing

2. Fannin County Policy is that all purchasing shall be conducted strictly on the basis of economic and business merit. The policy is intended to promote the interest of the citizens of Fannin County. To avoid violation of or the appearance of violation of the policies in this manual, county employees and officials are prohibited from: Seeking or accepting, directly or indirectly, any loans, services, payments, entertainment, trips or gifts of merchandise or money in any amount from a business or an individual doing or seeking to do business with the county.

3. Purchasing Authority & General Guidelines • Authority to make County purchases resides in either the County Purchasing Department or the Commissioners’ Court. • The Purchasing Department is responsible for making purchases of supplies, materials, equipment and for making contracts for repairs to County owned property, except in cases where competitive bids are required by law. • All competitively bid contracts are made by and through the Commissioners’ Court. – Competitive Bids shall be supervised by the Purchasing Agent in accordance with the purchase contract. (Local Government Code 262.011 (e)). Competitive Bidding is required on all purchases of goods and services for $50,000 or more except in the case of an emergency.

4. IMPORTANT • Under no circumstance shall any employee of Fannin County authorize a purchase without a formal means of order placement with an approved requisition: • Blanket purchase order • Signed purchase order • Procurement Card • Signed contract

5. Local Government Code Chapter 262.034-035 • Any employee of Fannin County that authorizes a purchase without the formal means of order placement is subject to an offense punishable as a Class B Misdemeanor and if convicted results in immediate removal from office or employment of that person. For four years after the date of the final conviction, the removed officer or employee is ineligible to be a candidate for or to be appointed or elected to a public office in this state; to be employed by the county with the person served when the offense occurred; to receive any compensation though a contract with that county.

6. Local Government Code 262.011 • On July 1 of each year, the county purchasing agent shall file with the county auditor and each of the members of the board that appoints the county purchasing agent an inventory of all the property on hand and belonging to the county and each subdivision, officer, and employee of the county. The county auditor shall carefully examine the inventory and make an accounting for all property purchased or previously inventoried and not appearing in the inventory.

7. Local Government Code 262.011 Continued • To prevent unnecessary purchases, the county purchasing agent, with the approval of the commissioners court, shall transfer county supplies, materials, and equipment from a subdivision, department, officer, or employee of the county that are not needed or used to another subdivision, department, officer, or employee requiring the supplies or materials or the use of the equipment. The county purchasing agent shall furnish to the county auditor a list of transferred supplies, materials, and equipment.

8. Do’s Don’ts Purchasing Do’s andDon’ts • Adhere to the County Purchasing Code of Ethics and avoid activities and behaviors that are unethical or create a conflict of interest or the perception of a conflict of interest. • Ensure funding is available before submitting a requisition • Plan purchases to minimize the use of emergency and expedited purchases • Plan purchases to allow sufficient time to process purchase requests. In general, departments should allow 2–3 weeks for all non-contract purchases under $50,000 and 6–8 weeks on all purchases requested over $50,000 that are not covered by an existing contract. • Ensure that purchasing policies and procedures are understood before ordering • Do not authorize the purchase of any goods or services. • Do not purchase any goods or services for your own personal benefit. • Do not obligate the purchase of goods that are delivered for use on a trial basis. • Do not commit to acquire goods or services without an authorized purchase order. • Do not use purchasing strategies that violate the law to avoid competition. Strategies that are prohibited by law include: -purchasing a series of component parts that would normally be purchased as a whole (component purchases); -purchasing items in a series of separate purchases that normally would be purchased as a single purchase (separate purchases); and -purchasing over a period of time, that normally would be done as one purchase (sequential purchases). • Do not violate or authorize the violation of the Purchasing Act.

9. COUNTY OWNED SUPPLIES AND EQUIPMENT • All County owned supplies, equipment and machinery shall be used only for County business. • Elected Officials and Department Heads are responsible for the proper accounting for, maintenance of and use of County equipment.

10. Elected Official and Department Head Responsible for Asset Inventory • Each Elected Official and Department Head shall be responsible for the custody and care of county property assigned to their respective department. County property shall be used only for County purposes. Each Elected Official and Department Head shall be responsible for ensuring that assets are tracked and secured in a manner that is most likely to prevent theft, loss, damage or misuse of assets. Care shall be taken to insure all necessary precautions are in place so that assets are secured.

11. CAPITALIZED PROPERTY • Assets with a value of $5,000 or more shall be tagged with a County Property Tag and tracked in the County’s Financial Management System. Below are the four major classifications: • Land • Buildings • Improvements other than Buildings • Machinery & Equipment

12. CONTROLLED PROPERTY • New Property with a value of $500 to $4,999 shall be tagged with a County Property Tag. • Or Property that is considered “High Risk” for theft, loss, damage, or misuse. • Of any other property that the County may deem necessary to track.

13. CONTROLLED PROPERTY Each Elected Official and Department Head shall maintain control over property not defined under the capitalization policy, yet considered high-risk items. High risk items are but not limited to the following: • Weapons • Electronics • Tools • Computers and Peripherals Each Official shall be responsible for ensuring these items are tracked and secured in a manner that is most likely to prevent theft, loss, damage or misuse. Information Systems Services shall maintain an inventory of all computer equipment. This inventory doesn’t absolve Elected Officials and Department Heads from responsibility of assuring stewardship of the property.

14. Elected Official and/or Department Head Responsibilities • Establish internal procedures to track asset inventory to include but not limited to procedures for the resignation, termination, and/or retirement of any sensitive position within their respective area to complete an inventory before the end of employment and account for inventory after the end of employment. • Establish internal procedures for reporting by employees of missing, damaged, misused or stolen inventory.

15. Fannin County Inventory/Fixed Asset Policy • Taxpayers of Fannin County have an enormous investment in our county buildings, land, equipment, and furnishings. Not only is it good accounting policy to maintain accurate inventory records of all assets of the county but it is mandated by State Law. • The County Purchasing Agent serves as “Property Manager” and has control of the transfer of equipment, etc. per Local Government Code 262.011

16. Protection of Property • Protection of Property is outlined in Section 31.11 of the Penal Code of Texas. In accordance with this status a person commits and offense if he or she: • Knowingly or intentionally removes or causes to be removed, alter, or obliterates the serial number of a fixed asset tag number marking county property. • Possesses, distributes, sells or offers to sell county property knowing, or having reason to know that the serial number or asset tag number has been removed, altered, or obliterated. A person convicted of violating the statue referenced above is subject to penalties according to the property values involved.

17. Reporting of Lost or Stolen Assets • Report lost or stolen items immediately to the Purchasing Agent, Auditor and the proper law enforcement agency. • Complete Form A with a copy of the report to the law enforcement agency and send to the Purchasing Office. • Be present at the next Purchasing Board Meeting to present an update of any findings, etc.

18. Disposal Procedures • Equipment which is broken or no longer needed may be transferred to the Purchasing Department utilizing Form A. • Purchasing Agent will periodically requests the Commissioners’ Court to declare property “surplus” (in excess of needs useful) or “salvage” (has no value-not useful) to be either placed for bid or auction on surplus property and recycled or destroyed for salvage property. This is in accordance with Texas Local Government Code Chapter 263 – Sections 263.151 through 263.158. • Any stolen, abandoned, or confiscated property seized by a peace officer may be disposed in accordance with Article 18.17, Texas Code of Criminal Procedure.

19. Purchasing Mission Statement • The Purchasing Department of Fannin County is committed to procuring goods and services in the most efficient and effective way to achieve the best price consistent with the quality needed to meet the requirements of the County. • Seek to maximize the purchasing power of public funds, while promoting fair and open competition. • Work together to create innovative approaches to the procurement process for the benefit of the County. • Follow a strict Code of Ethics, avoiding the appearance of and the preventing the opportunity for favoritism. • Strive to create a friendly work environment through teamwork, respect, integrity and honest communication.

20. CODE OF ETHICS • No member of Fannin County or any employee, employee, family member or appointee of Fannin County shall have any interest in, or in any manner be connected with any contract or bid for furnishing supplies, materials, services, and equipment of any kind to any agency or county of the State of Texas Neither shall any member or employee, employee family member, or appointee, under penalty of dismissal, accept or receive from any person, firm, or corporation to whom any contract may be awarded, directly or indirectly, by rebate, gift, or otherwise, any money or other thing of value whatever, nor shall any employee receive any promise, obligation, or contract for future reward or compensation from any such party. • Legal Authority: Texas Government Code Title 10, Subtitle D, Chapter 2155.003

21. Where to Find It • Texas Finance Law – LGC 113.043, 140.003, 111.093 • Basic Purchasing Law – LGC 262.022 • Bidding Procedures – LGC 262.0225 • Competitive Procedures – LGC 262.023 • Purchases over $50,000 – LGC 262.023 • Discretionary Exemptions – LGC 262.024 • Mandatory Exemptions – LGC 262.0241 • Purchases under $50,000 – LGC 262.023 • Procedure for Opening Bids – LGC 262.026 • Presentation of Bids to Court – LGC 262.027 • Trade-In of Property – LGC 263.152 • Cooperative Purchasing – LGC 271 • Interlocal Agreements – Government Code 791 • Professional Services – Government Code 2254

22. Questions and Answers

23. Fannin County Purchasing Homepage http://www.co.fannin.tx.us/default.aspx?Fannin_County/County.Purchasing